Thinking of going limited and getting a car through the company — how does company car tax work?

Here's the plain-English version: a company car is a benefit in kind, so you're taxed on a percentage of the car's list price — that percentage (the 'appropriate percentage') is set by the car's CO2 emissions, which is why electric cars are so attractive. For the current tax year, a fully electric car is taxed at just 4% of its list price, compared with up to 37% for high-emission petrol or diesel cars. The company also pays employer National Insurance (Class 1A) on that benefit value. Whether it's cheaper than buying personally really depends on the car: for an electric car the tax hit is small and the company gets corporation tax relief on the cost, but for a high-emission car the benefit-in-kind charge can easily outweigh the savings. Run the numbers for the specific car before deciding — and remember fuel for private use is taxed separately as an additional benefit.